Venture Global LNG Inc. has announced the closing of the project financing for the company's Calcasieu Pass LNG facility and associated Trans Cameron pipeline in Cameron Parish, La.
The proceeds of the debt and equity financing fully fund the balance of the construction and commissioning of Calcasieu Pass. Full site construction has been underway since February, and the project is expected to reach its commercial operations date (COD) in 2022.
Stonepeak Infrastructure Partners provided a $1.3 billion equity investment for the project. The lender group for the company's $5.8 billion construction financing includes the world's leading Asian, European and North American project finance banks. The lenders who provided funding at closing are Banco Santander SA, Bank of America NA, Goldman Sachs Bank USA, Industrial & Commercial Bank of China Ltd., ING Capital LLC, JPMorgan Chase Bank NA, Mizuho Bank Ltd., Morgan Stanley Senior Funding Inc., Natixis, Nomura Securities International Inc., Royal Bank of Canada, Sumitomo Mitsui Banking Corp. and The Bank of Nova Scotia.
Venture Global LNG Co-CEOs Mike Sabel and Bob Pender jointly stated, "Our goal has always been to lower the cost of electricity by delivering clean, low-cost LNG to the world. The closing of our financing is the culmination of years of hard work, and we want to sincerely thank our Venture Global team, our construction partners, our foundation customers, our lenders and advisors, Cameron Parish and our local partners in Louisiana."
Calcasieu Pass has received all necessary permits, including FERC authorization and Non-FTA export authorization from the U.S. Department of Energy. The project has 20-year LNG sale and purchase agreements with Royal Dutch Shell Plc, BP Plc, Edison SpA., Galp, Repsol and PGNiG. Venture Global LNG is also developing the 20 MTPA Plaquemines LNG project and the 20 MTPA Delta LNG project, both in Plaquemines Parish, La.
Morgan Stanley served as financial adviser to Venture Global for the transaction. Latham & Watkins LLP served as counsel to Venture Global and Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to the lenders.
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